Home Gallery Activities News Bernama - Sarawak Pan Borneo Highway PDP Termination Saves Govt RM3.1 Bln - Lim

4/28/2021 Bernama - Sarawak Pan Borneo Highway PDP Termination Saves Govt RM3.1 Bln - Lim

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Home Gallery Activities News Bernama - Sarawak Pan Borneo Highway PDP Termination Saves Govt RM3.1 Bln - Lim

Thursday, Feb 06 2020 wwwold.treasury.gov.my/index.php/en/gallery-activities/news/item/5948-bernama-sarawak-pan-borneo-highway-pdp-termination-saves-govt-rm3-1-bln-lim.html 1/4 4/28/2021 Bernama - Sarawak Pan Borneo Highway PDP Termination Saves Govt RM3.1 Bln - Lim

MOF PUTRAJAYA, 6 FEB --RM3.1 billion in costs could be saved from the Services termination of the Pan Borneo Highway, Sarawak project delivery Online partner (PDP) agreement, according to Finance Minister Lim Guan Eng. BUSINESS Services He said the funds could then be utilised for other infrastructure AGENCY development projects in the state. MOF STAFF Mobile With the termination of the agreement eective Feb 20, Lim said the Application

nancial implications for the implementation of the project would be Microsite reduced by 14 per cent.

"The estimated nancial implications to the government with the e- previous involvement of the PDP company amounted to RM21.9 billion Participation while the estimated nancial implications after the termination of the & Feedback PDP agreement would amount to RM18.8 billion," he said here today.

Earlier, Lim witnessed the signing of the Mutual Termination Letter by Statistics & representatives of the federal government, Sarawak state government Performance and the PDP company.

He also witnessed the signing of the new Project Funding Agreement Links between the federal government and DanaInfra Nasional Bhd. Also present at the ceremony were Federal Works Minister Baru Bian, Federal Agency Finance Deputy Minister Datuk Wira Amiruddin Hamzah and Treasury secretary-general Tan Sri Ahmad Badri Mohd Zahir. Contact On Sept 20 last year, the Federal Works Ministry issued a notice of Us termination to Lebuhraya Borneo Utara Sdn Bhd, the PDP for the Ministry of Sarawak portion of the Pan Borneo Highway project. Finance Malaysia No. 5 Persiaran Perdana Presint 2, wwwold.treasury.gov.my/index.php/en/gallery-activities/news/item/5948-bernama-sarawak-pan-borneo-highway-pdp-termination-saves-govt-rm3-1-bln-lim.html 2/4 4/28/2021 Bernama - Sarawak Pan Borneo Highway PDP Termination Saves Govt RM3.1 Bln - Lim

Launched in March 2015, the mega project which would potentially link Federal the two East Malaysian states was regarded as the biggest infrastructure Government development endeavour being implemented by the federal government Administrative in Sarawak in 54 years. Centre, 62592 WP "The Pan Borneo Highway, Sarawak project will be implemented PUTRAJAYA conventionally without the involvement of PDPs," Lim said. He disclosed that the Cabinet, during a meeting on Sept 4 last year, agreed to the 03-8000 8000 implementation of 11 works packages involving 786.4 kilometres. He said 03-88823893 / one works package contract, namely WPC01 involving a 33-kilometre 03-88823894 stretch from Telok Melano to Semantan, was completed according to schedule on Jan 6 this year. Meanwhile, asked about a possible delay of

the project following the PDP agreement termination, Baru Bian replied: "We foresee challenges in delaying the construction itself. The reason we

did away with PDP was to ensure that the project is executed and implemented smoothly within the time period and cost."

However, he said the challenges could be addressed via working closely with the Sarawak state government and Sarawak Public Works Department as the superintending ocer to ensure smooth implementation of the project. On any penalty to be paid to the PDP for the termination, he said his ministry was still studying the matter and has not reached a decision.

"Denitely, there will be some claims, even the possibility of loss of prot, but we will study the conditions under the agreement itself. Whatever claim that is legal and lawful, we will look into it,” he said.

In another development, Lim revealed that an economic stimulus package to counter the coronavirus impact on the country’s economy would be announced soon. wwwold.treasury.gov.my/index.php/en/gallery-activities/news/item/5948-bernama-sarawak-pan-borneo-highway-pdp-termination-saves-govt-rm3-1-bln-lim.html 3/4 4/28/2021 Bernama - Sarawak Pan Borneo Highway PDP Termination Saves Govt RM3.1 Bln - Lim

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